Is Tesla Stock Halal? The Verdict for Muslim Investors

Tesla isn’t just a car company. It’s a symbol of innovation, leading the way in electric vehicles, AI, and the global transition to clean energy. For many investors, Tesla represents the future.

For Muslim investors, that future also comes with a vital question: Is Tesla stock Halal?

For Muslim Investors, investing isn’t just about returns, it’s about ensuring financial ambitions align with Islamic finance principles. Answering this question requires a clear, disciplined analysis that goes beyond market hype and provides a definitive verdict based on recognised standards.

At Tabadulat, we help you navigate questions like this with clarity. Using the Accounting and Auditing of Islamic Financial Institutions (AAOIFI) standards, the most recognised benchmark in the Islamic finance industry, we have analysed Tesla's latest financials. 

What Makes a Stock Halal?

Under AAOIFI standards, determining if a stock is permissible requires a two-stage screening process. This is the foundation of Halal investing, a topic we explore in our complete guide to what makes an investment Halal.

1. Activity Screen First, we examine a company’s core business. Its primary activities must be Halal. A company fails if it is significantly involved in Haram sectors, such as:

• Alcohol, pork, or non-Halal food.
• Gambling and casinos.
• Conventional finance (Riba-based banks, insurance).
• Adult entertainment.

2. Financial Ratio Screen Even if the business is Halal, it must pass three financial tests. These ensure it doesn’t rely on Riba (interest) or unsustainable debt:

• Riba-bearing debt must be less than 33% of total assets.
• Accounts receivable must be less than 33% of total assets.
• Cash and Riba-bearing investments must be less than 33% of total assets.

For a refresher on AAOIFI Standards and Halal Stocks, see our explainer blog.

Tesla’s Business: Halal and Forward-Looking

Tesla’s mission is to accelerate the world’s transition to sustainable energy. It builds electric vehicles, develops solar products and works on battery technology. These are all Halal activities, and many would argue they contribute to the Islamic principles of stewardship (khilafah) and public benefit (maslahah).

While Tesla offers vehicle financing that can involve Riba, this income stream is a small fraction of its total revenue, falling below the 5% threshold allowed by scholars.

Verdict: Tesla passes the Business Activity Screening. Its core mission is fundamentally Halal.

Tesla’s Financials: The AAOIFI Test

Now for the financial analysis. A company’s balance sheet reveals its true financial conduct. 

We are using the latest official data from Tesla's Q1 2025 Shareholder Update.

Source Data (as of March 31, 2025):

• Total Assets: $125.11 billion
• Total Riba-Bearing Debt: $7.53 billion
• Accounts Receivable: $3.78 billion
• Cash, Cash Equivalents & Investments: $37.0 billion

Let's run the three AAOIFI tests:

1. The Debt Burden

• The Rule: Riba-bearing debt must be less than 33% of total assets.
• Calculation: ($7.53bn / $125.11bn) = 6.02%
• Result: Extremely low and well within the limit. PASS

2. The Accounts Receivable Test

• The Rule: Accounts receivable must be less than 33% of total assets.
• Calculation: ($3.78bn / $125.11bn) = 3.02%
• Result: Very healthy and well below the threshold. PASS

3. The Cash & Riba-Bearing Securities Test

• The Rule: Cash and Riba-bearing investments must be less than 33% of total assets.
• Calculation: ($37.0bn / $125.11bn) = 29.57%
• Result: This is below the 33% threshold. PASS

So, Is Tesla Stock Halal? The Verdict

Yes. Based on the application of AAOIFI standards to its latest Q1 2025 shareholder update, Tesla stock is currently Shariah-compliant and Halal to invest in.

This is good news for Muslim investors who want to invest and add Tesla's to their Halal portfolio. However, it's important to remember a key point: this compliance status is only valid for this quarter.

A company's financials are dynamic. A new acquisition, a change in debt structure, or simply accumulating more cash could change these ratios in the next quarter, potentially making the stock non-compliant again. This is the single biggest challenge for the conscientious Muslim investor.

Tabadulat: From Complexity to Clarity

Knowing a stock is Halal today is one thing. Ensuring your entire portfolio remains Halal is a real challenge. Manually tracking quarterly reports for every company you invest in is time-consuming and prone to error.

This is the very problem Tabadulat was built to solve. We believe that Muslim investors deserve better tools to navigate modern markets with confidence and peace of mind.

Our platform transforms this complex, ongoing process into a simple, clear, and actionable insight.

• Always Up-to-Date Screening: We monitor and screen thousands of global stocks in real-time. When a company's financials change, its compliance status on our platform updates automatically. You never have to worry about missing an opportunity or unknowingly holding a stock that has become non-compliant.
• Complete Transparency: We don’t just give you a "Halal" or "Haram" label. We will show you our work. You can see the exact ratio calculations for every stock so you understand why it is compliant. We will even alert you if a stock in your portfolio changes its status.
• Certified and Trusted: In addition to following AAOIFI standards, our screening methodology is reviewed and certified by a globally respected, independent Shariah Supervisory Board. You can invest with peace of mind, knowing the standards are authentic and applied with integrity.
• Effortless Purification: For compliant stocks, our built-in Zakat calculator helps you determine the exact portion to purify from your dividends, ensuring your returns are always cleansed and fully Halal.

With Tabadulat, you no longer have to choose between participating in modern financial markets and adhering to your faith.

Stop the guesswork and start building your Halal wealth the right way.